Understanding megatrends: Identifying the potential future winners
What is a megatrend?
A megatrend is a strong force that has the power to shape the world. It occurs on a large scale and affects human beings, transcending borders and factors that divide them. Megatrends unfold over a long period of time and are measurable. They help us arrive at future possibilities with a better visibility. Technological advancements, regulatory changes, economical changes are some of the popular megatrends you may have heard about in recent times.
Future megatrends can also be used in investing to predict industry sectors, companies or investment instruments that are likely to perform better in the future. By understanding and acting upon megatrends, investors can ride the wave as the future unfolds and possibly build wealth for themselves and their families.
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What is megatrend investing?
It is about aligning the investment strategy and investing in industries, sectors, and companies that have growth potential based on the megatrends. Thus, investors can capitalise on megatrends to grow wealth over long term by putting their money in megatrend strategy focused mutual fund schemes. For example, a flexi-cap fund that invests in companies well-positioned to benefit from megatrends over the long term can be a well-rounded investment option. The Bajaj Finserv Flexi Cap Fund, for instance, can be a suitable choice for investors.
Why should you invest in the Bajaj Finserv Flexi Cap Fund?
Bajaj Finserv Flexi Cap Fund follows a megatrend-based investing approach to tap into the growth potential offered by megatrends. Simultaneously, this fund seeks to manage equity investment risks through diversification across companies with different market capitalisations in various industry sectors. The scheme aims to generate long-term growth opportunities presented by megatrends strategy and provide investors with exposure to high-growth potential sectors such as digitalisation, healthcare, and Artificial Intelligence (AI) among others. You will be able to potentially create long term wealth by investing in this mutual fund since you can seek to get the benefit of investing based on future megatrends.
Here are three main features of the Bajaj Finserv Flexi Cap Fund you should know about:
Freedom of asset allocation: A flexi-cap fund, by design, gives a lot of freedom to the fund manager to change the asset allocation strategy based on market trends. With a megatrend-based investment approach, this flexibility allows for wider investment opportunities thereby seeking to generate relatively better returns.
Return on investment: Since the Bajaj Finserv Flexi Cap Fund follows a megatrend-based investment approach, it has the potential to earn reasonable returns over long term.
Risk factor: Flexi cap funds fall into the very high-risk investment category on the riskometer because they invest in equity across companies in industry sectors based on their growth potential. The key is to keep an eye on the portfolio and stay invested in the long term to get potentially better returns.
Conclusion
To conclude, megatrend investing offers a way to keep up with the changing trends in the present day and capture opportunities for wealth creation in the long term. By following a flexible asset allocation approach while investing in megatrends, you can potentially benefit from the major events shaping the financial world.
FAQs:
How can I benefit from a megatrend investing strategy?
As an investor, a megatrend investing strategy can help you in several ways. It can help you create long term wealth and tap into markets with potential growth. The flexibility to diversify the portfolio could act in the interests of the investor.
How is Bajaj Finserv Flexi Cap Fund different from other flexi cap funds?
Bajaj Finserv Flexi Cap Fund is powered by a megatrend investing strategy. The idea with this fund is to tap into companies with growth potential and stay invested for a long time. The fund seeks to have a relatively low turnover ratio and aim to ignore the current market noise for potential long-term benefit.
Is there any risk associated with flexi cap fund?
Flexi cap funds are relatively high risk funds. Meaning, flexi cap funds are more impacted by market volatility and sectoral risks. Hence, an investor should keep an eye on the portfolio and stay invested for the longer run to reap potential benefit from the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views / opinions or as an investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.